Joe Doakes from Como Park emailed:
Congress foolishly passed laws that allow payday lenders to help poor people make it from one paycheck to the next. President Obama – who vowed before God to faithfully execute the laws enacted by Congress – doesn’t like that one (never has; when he was in the Illinois legislature, Obama backed legislation to ban payday loans).
Suddenly, federal bureaucrats have set about to undermine the law allowing payday loans and now to stonewall Congressional questions about it.
President Obama will learn of the operation by reading the newspapers and begin blaming “rogue” agents in 5 . . . 4. . . .3 . . . .
Joe Doakes
The definition of totalitarian; everything that isn’t mandatory is “rogue”.
Yes – let’s stop payday lending because it costs too much interest for the borrowers. Only problem is that nobody can make money lending at lower interest. That means most of these folks will have no access to credit except for their neighborhood loan shark. I wish the do-gooders would please explain to the actual borrowers how this is better for them. I have never heard of a payday lender beating up people who can’t pay.
I agree, Moose. I speak from personal experience. My daughter, needing to make rent before her pay check arrived, went to one of them in Chicago, no less. She didn’t want to come to mom and dad for the money, so I give her credit for wanting to work it out. She was expecting a refund on her income tax, so she thought that she would be able to pay that loan back within a month, which would have been fine. Unfortunately, two weeks later, she was unexpectedly laid off from her jobl. She went and explained her dilemma and they are working with her, even keeping her interest rate lower.
This is really complicated stuff, but the Obama administration is pricing the poor out of banking. It’s terrible.
Payday lending is OK if it’s regulated right and the banking system is not messed up like it is now.
Reportedly the solution is to let Wall Mart become a very, very simple banking operation. They can handle the low ROI.